Our policy is to make funds from your cash and check deposits available to you on the same business day as the day we receive your deposit. Once the funds are available, you can withdraw them in cash and/or we will use them to pay checks that you have written. For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and Federal Holidays. If you make a deposit before at close of business on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after at close of business or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you have deposited that are returned to us unpaid and for any other problems involving your deposit.

If you make a deposit before 2:00pm on a business day at an ATM/Night Depository owned and operated by Bay-Vanguard Federal Savings Bank, all deposited items will have the same availability as if they were made at a staffed location. Deposits made after 2:00pm and deposits made on a Saturday, Sunday or Federal Holiday will be considered deposited on the next business day.

The length of the delay varies depending on the type of deposit and is explained below.

RESERVATION OF RIGHT TO HOLD

In some cases, we will not make all of the funds that you deposit by check available to you on the same business day as the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the second business day after the day of your deposit. The first $200 of your deposit, however, may be available on the first business day after the day of your deposit. If we are not going to make all of the funds from your deposit available on the same business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the business day after we receive your deposit. If you need the funds from a deposit right away, you should ask us when the funds will be available.

LONGER DELAYS MAY APPLY

We may delay your ability to withdraw funds deposited by check into your account an additional number of days for these reasons:

We believe a check you deposit will not be paid.

You deposit checks totaling more than $5,000 on any one day.

You have overdrawn your account repeatedly in the last six months.

You redeposit a check that has been returned unpaid.

There is an emergency, such as failure of communications or computer equipment

There is a suspension of payments by another institution

There is a war or an emergency beyond the control of the depository institution.

We will notify you if we delay your ability to withdraw funds for any of these reasons, and will tell you when the funds will be available. They will generally be available no later than the first business day after the day of your deposit.

Holds On Other Funds

If we cash a check for you that is drawn on another financial institution, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it. If we accept for deposit a check that is drawn on another financial institution, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.

SPECIAL RULES FOR NEW ACCOUNTS

If you are a new customer, the following special rules will apply during the first 30 days your account is open.

Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000.00 of a day’s total deposits of cashier’s, certified, teller’s travelers, and federal, state, and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the checks must be made payable to you. The excess over $5,000 will be available on the same business day after the day of your deposit. If your deposit of these checks (other than a U. S. Treasury check) is not made in person to one of our employees, the first $5000 will not be available until the second business day after the day of your deposit.

Funds from deposits of checks drawn on Bay-Vanguard Federal Savings Bank will be available on the same business day as the day of your deposit.

Funds from all other checks deposits will be available on the second business day after the day of your deposit.

DEPOSITOR LIABILITY

Customers are responsible for all problem deposits, even when funds have been made available and have been withdrawn. Problem deposits include deposited checks which have been returned unpaid to us.We limit over-the-counter cash withdrawals to $3,500 per business day. For larger sums of cash, please make arrangements with the bank at least a week in advance.

REFUSAL OF DEPOSIT

We continue to reserve the right to refuse any deposit. In some circumstances, items unacceptable for deposit may be processed as collection items.

PAYMENT OF INTEREST POLICY

Interest will not be paid on funds deposited by a check that is returned unpaid to Bay-Vanguard Federal Savings Bank

The rights and obligations of the Receiver concerning the entry shall be governed by and construed in accordance with the laws of the State of New York, unless the Receiver and the RDFI have agreed that the laws of another jurisdiction shall govern their rights and obligations. Credit given by the RDFI to the Receiver for the entry as provided by subsection 4.4.1 (Availability of Credit Entries to Receivers) is provisional until the RDFI has received final settlement through a Federal Reserve Bank or otherwise has received payment as provided for in Section 4A-403(a) of Article 4A. If the RDFI does not receive such payment for the entry, the RDFI is entitled to a refund from the Receiver in the amount of the credit to the receiver's account, and the Originator will not be considered to have paid the amount of the credit entry to the Receiver.

These rules do not require the RDFI to provide the Receiver with notice that the RDFI has received the entry unless the RDFI had agreed to do so.